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Hosking PartnersESG report30 Apr 2022Source: hoskingpartners.com

Q1 2022 – ESG and Active Ownership Report

Hosking Partners is a London boutique founded in 2013 by Jeremy Hosking, a portfolio manager at Marathon Asset Management for over 25 years. It runs a single global equity strategy built on the capital-cycle, supply-side approach — contrarian, long-term, and unusually diversified (350+ holdings) under a multi-counsellor model, managing around $5.5bn.

Jeremy Hosking · 2013 · 伦敦Capital cycle / contrarian

In plain words

This report argues that ESG (environmental, social, governance) isn't a style label but a tool to find value. The author says ESG boils down to whether companies aim to make a long-term positive impact on society—solving problems, creating jobs, rewarding savers. No specific stocks are mentioned; the focus is on combining ESG with active ownership (influencing company decisions) rather than just checking boxes.

AI SummaryAI-generated · may contain errors · verify against the original

At a Glance

One-sentence summary of the author’s current market view: ESG analysis is a value-identification tool that should return to the fundamental purpose of enterprises, rather than being a style label. [Neutral]

  • The author emphasizes that ESG “means everything and nothing,” with the core being whether a company positions itself to generate long-term positive social impact.
  • After the update, the report will shift from data disclosure to thought insights, adding special articles to demonstrate approaches to handling hot ESG topics.
  • The author reiterates that ESG should serve the fundamental purpose of enterprises solving social problems, creating jobs, and rewarding savers, combined with active ownership.
  • This article does not target any specific company or theme, aiming instead to provide a rationale for the ESG integration approach.
~3 min full read · 4 sections
Deep Analysis

ESG as a Value-Identification Tool, Not a Style Label

The author argues that ESG analysis is not fundamentally new, but rather another tool in the investor's toolkit for identifying value. The article opens by noting that the ESG concept covers a broad range of issues, "means everything and nothing at the same time," and has become tied to specific investment styles and sector preferences. However, the author emphasizes that its core returns to the fundamental purpose of a company—providing what people need, solving old problems, creating jobs, and generating returns for savers. The author states: "it all comes back to the fundamental question of whether companies are positioning themselves to make a long-term positive impact to society." The author believes this analysis requires "intellectual humility, curiosity and willingness to adapt" to reconcile.

Report Update: From Data Disclosure to Intellectual Insight

Following the update, the report will include new thematic articles alongside routine data and engagement case studies, aiming to provide deeper intellectual insight. In introducing the updated ESG and Active Ownership Report, the author notes that future editions will feature a series of written articles covering hot topics in the ESG space, showcasing the institution's approach to these issues. The overall goal is to "offer additional insight not only into the underlying data of our ESG and wider engagement activity, but also into our broader thinking." This marks a shift in the report from mere data disclosure to sharing intellectual perspectives.

Investment Implications

This article has no specific company or theme in focus; its core is to reaffirm that ESG should return to fundamental analysis, serving the fundamental purpose of companies solving social problems, creating jobs, and generating returns for savers. As an active investor, the author views ESG as a tool integrated with active ownership, influencing portfolio companies to drive their long-term positive impact on society. Readers should note that this is a perspective from the position-holder, aiming to provide a rationale for its ESG integration approach.


Position Moves

(No positions meeting the criteria)